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One of the most expensive projects ever approved promises to change international transport, as Asia's two biggest economies fight for the right to lead construction.
A National Assembly of Vietnam approved, on November 30th, an ambitious infrastructure project: the construction a railroad high-speed rail connecting Hanoi in the north to Ho Chi Minh City in the south.
With an estimated cost of US$ 67 billion, The project promises to transform travel, commerce and transportation in the country along a 1.541-kilometer route.
The new railway will be equipped for trains that will reach speeds of up to 350 km/h. This advancement will drastically reduce travel time between Vietnam's two largest cities, from 30 hours to just five hours.
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In addition to offering an efficient service for passengers, the system will also be designed for cargo transportation, with a direct impact on national trade and logistics.
Construction is scheduled to begin in 2027, and operations are expected to begin in 2035. During this period, the project will cross 20 provinces and cities, housing 23 passenger stations and five freight stations.
Furthermore, the Deputy Minister of Transport, Nguyen Danh Huy, highlighted the importance of the project to meet the growing transportation demands in the north-south corridor, the busiest in Vietnam.
According to Nguyen, the bullet train will be a milestone in the restructuring of the country's transportation strategies. “This project is crucial to reshaping transportation and propelling Vietnam into a new era of growth.”, said the deputy minister.
The economic and social impact of construction
Experts believe the new railway will be a game changer for Vietnam’s development. Dan Martin, a consultant at Dezan Shira & Associates, highlighted the potential of the project to boost the Vietnamese economy.
“This project will boost the economy by making it easier for critical components to reach manufacturing hubs and speeding up the delivery of finished products. It will reduce lead times and solidify Vietnam’s role in global supply chains.””, He explained.
Currently, road transport dominates the movement of people and goods in the country. However, roads are often criticized for their low density and high costs operational. This poor infrastructure has limited economic growth and restricted Vietnam as a destination for foreign investment.
Furthermore, the railway will play a strategic role in military logistics and defense transportation. With its ability to move troops and equipment quickly, the project brings additional value to national security.
Past of challenges and skepticism
Although Vietnam has dreamed of a bullet train for nearly two decades, the path to making the project a reality has been fraught with financial and political obstacles. In 2010, the National Assembly rejected a similar proposal. At the time, the estimated cost was $56 billion, but it was deemed economically unsustainable.
Economist Pham Chi Lan, a critic of the project, argued that resources should be prioritized to meet the country's most pressing needs, such as agriculture, education and basic infrastructure. “This project is too risky and too luxurious for Vietnam, where we have many other things to do,” Pham said in an interview with The Associated Press at the time.
In addition to financial concerns, many questioned Vietnam's technical and industrial capacity to implement a high-speed railway. speed.
Unlike China, which has built thousands of kilometers of high-speed rail since the early 2000s, Vietnam does not have the same level of technological expertise, industrial capacity or financial surplus to make a project of this magnitude viable.
However, the scenario has changed. Neighboring countries such as Laos and Indonesia have moved forward with their own railway projects, creating a “demonstration effect” that encourages Vietnam to follow suit.
Financing and environmental challenges of construction
While the Vietnamese government plans to prioritize domestic resources to finance the bullet train, it is considering seeking international loans if conditions are favorable. Still, the project will face significant challenges.
One of the main obstacles will be the relocation of 120 people living along the planned route. Removing entire families will require robust compensation and resettlement policies to minimize social impacts.
Furthermore, the railway route will require the removal of parts of protected forests and rice fields, which could raise environmental concerns. This could make the project even more difficult to implement, especially at a time when Vietnam is trying to balance economic growth and sustainability.
The dispute between China and Japan over the project
With the railway approved, competition between China and Japan for involvement in the project is likely to intensify. Both countries have extensive experience in high-speed rail construction and are major rivals in the infrastructure sector in Southeast Asia.
China, known for its ability to deliver high-speed projects at lower costs, has already expressed interest in participating. Chinese companies have been following the development of the Vietnamese bullet train for years and see the construction as an opportunity to expand their presence in the region.
A Chinese rail industry source told the Global Times that the country’s involvement will depend on how Vietnam defines the technical standards and financing model.”Although there are still many uncertainties, we believe that Chinese companies have a good chance of participating as partial contractors, especially in areas such as telecommunications and railway signaling.”, commented the source.
On the other hand, Japan is also positioning itself as a strong competitor. As Vietnam's largest Official Development Assistance (ODA) donor, Japan has a historical relationship with the country and has already shown interest in financing infrastructure projects.
In March 2024, Shunichi Suzuki, then Japan's finance minister, reaffirmed Japan's commitment to supporting the Vietnamese railway. In June, during a meeting with the Ministry of Transport in Hanoi, Japanese Ambassador Ito Naoki highlighted Tokyo's strong interest in the project.
This rivalry between China and Japan reflects more than just the pursuit of lucrative contracts. It symbolizes a geopolitical struggle for influence in Southeast Asia, a strategic region in terms of global trade and logistics.
Geopolitical implications
Vietnam’s decision on which country will lead the project will have major implications for its infrastructure and geopolitical positioning. Although China is one of Vietnam’s main trading partners, relations between the two countries are marked by tensions, particularly due to territorial disputes in the South China Sea.
At the same time, Vietnam has been strengthening ties with Japan, the United States and other nations seeking to balance Chinese influence in the region. This context makes choosing a partner for the railway a delicate strategic move.
The future of transportation in Vietnam
Regardless of the chosen partner, the approval of the bullet train marks a transformative moment for Vietnam. The railway not only promises to boost economic development and improve quality of life, but also positions the country as a relevant player in the global logistics landscape.
If successful, the project could serve as a model for other developing nations, showing how strategic investments in infrastructure can generate long-term economic and social benefits.
The bullet train is not just an engineering CONSTRUCTION: it is a symbol of Vietnam's commitment to progress and its integration into an increasingly connected world.
Even Vietnam will have a bullet train?… Is Brazil falling behind?…..
How embarrassing
How sad!……
Brazil violates humility and justice by comparing its progress, or lack thereof….
Bullet trains are in deficit all over the world. They only work with government subsidies. Why doesn't the US have bullet trains? It's a capitalist country, every project has to be profitable.
Because politics ****...doesn't make bullet trains in Brazil. Only politics wants money.
Here in Brazil, even if it were possible to overcome the political and business resistance that condemns us to spend billions on paved roads that will last 3 years, we would still have eco-Shiites in full swing to defeat Ibamas, Fatmas, national and international NGOs, in addition to attacks by Indians, quilombolas and landless people; it would take 100 years and cost trillions of dollars! Brazil is doomed to eternal mediocrity…